Signal Data centre build-out financed through securitisation while capacity localises

Summary

Data centre construction is increasingly being financed through capital markets even as the location of computing capacity shifts. By 2027, a quarter of new global computing capacity is expected to come from local data centres. That move could leave some existing global facilities, which currently provide this capacity, as stranded assets. Over the past five years commercial mortgage-backed and asset-backed securities together have funded more than $50 billion of data centres. This is still well short of the more than $900 billion of investment needed through 2029, and asset-backed securities alone are projected to supply $40 billion in 2026, pointing to a large and growing financing gap.